Finding 1216632 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-04
Audit: 403102

AI Summary

  • Core Issue: The District failed to properly update student verification status in the Common Origination and Disbursement (COD) system.
  • Impacted Requirements: This affects compliance with federal regulations on student verification (34 CFR 688.51 through 668.61).
  • Recommended Follow-Up: The District should enhance internal controls to ensure accurate updates of verification status in COD.

Finding Text

Student Financial Assistance Cluster Federal Supplemental Educational Opportunity Grants, ALN 84.007; Federal Work-Student Program, ALN 84.033; Federal Pell Grant Program, ALN 84.063; FederalDirect Student Loans, ALN 84.268 U. S. Department of Education, Program Year 2024-2025 Type of Finding – Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement – Special Tests and Provisions – Verification [34 CFR 688.51 through 668.61]. Condition – The District did not properly update student verification status in common origination and disbursement (COD). Cause – The District’s internal controls related to verification did not ensure verification status was properly updated in COD. Effect or Potential Effect – Student financial aid could be disbursed to a student who was not eligible. Questioned Costs – None. Context – Out of a population of 47 students who were selected for verification during the 2024-2025 award year, a sample of 5 students was selected for testing. Our sample was not, and was not intended to be, statistically valid. Of the 5 students tested, 1 student’s verification status was not correctly recorded in COD. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The District should update internal controls to ensure verification status is updated correctly in COD. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plan.

Corrective Action Plan

a. Administrator: V.P. Finance/ CFO ................... Victor Parker 601-857-3961 b. Administrator: V.P. Student Services ....... Jennifer Scott-Gilmore 601-857-3250 Student Financial Assistance Cluster: The District did not properly update the student verification process in COD and the District's internal controls related to verification did not ensure verification status was properly updated in COD. Corrective Action Planned: The Management has reviewed the District process of verifying student status in COD by evaluating student status information in both the District Student Information System (SIS) and COD concurrently. Reporting allows these functions to be compared, flagged, and corrected for any variation of student status information. The correction was implemented August 2025 and will be validated June 2026.

Categories

Special Tests & Provisions Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1216629 2025-002
    Material Weakness Repeat
  • 1216630 2025-002
    Material Weakness Repeat
  • 1216631 2025-002
    Material Weakness Repeat
  • 1216633 2025-003
    Material Weakness Repeat
  • 1216634 2025-003
    Material Weakness Repeat
  • 1216635 2025-003
    Material Weakness Repeat
  • 1216636 2025-003
    Material Weakness Repeat
  • 1216637 2025-004
    Material Weakness Repeat
  • 1216638 2025-004
    Material Weakness Repeat
  • 1216639 2025-004
    Material Weakness Repeat
  • 1216640 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $29.66M
84.268 FEDERAL DIRECT STUDENT LOANS $14.06M
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $1.65M
84.047 TRIO UPWARD BOUND $913,287
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $812,574
84.031 HIGHER EDUCATION INSTITUTIONAL AID $769,781
17.258 WIOA ADULT PROGRAM $759,369
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $643,544
10.568 EMERGENCY FOOD ASSISTANCE PROGRAM (ADMINISTRATIVE COSTS) $457,852
84.425 EDUCATION STABILIZATION FUND $452,757
84.044 TRIO TALENT SEARCH $397,674
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $372,327
84.042 TRIO STUDENT SUPPORT SERVICES $341,105
84.033 FEDERAL WORK-STUDY PROGRAM $323,943
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $315,709
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $302,217
20.205 HIGHWAY PLANNING AND CONSTRUCTION $299,718
17.259 WIOA YOUTH ACTIVITIES $169,521
89.003 NATIONAL HISTORICAL PUBLICATIONS AND RECORDS GRANTS $87,568
14.251 ECONOMIC DEVELOPMENT INITIATIVE, COMMUNITY PROJECT FUNDING, AND MISCELLANEOUS GRANTS $73,013
20.106 AIRPORT IMPROVEMENT PROGRAM, INFRASTRUCTURE INVESTMENT AND JOBS ACT PROGRAMS, AND COVID-19 AIRPORTS PROGRAMS $63,584
95.010 CONGRESSIONAL DIRECTIVES $55,154
59.037 SMALL BUSINESS DEVELOPMENT CENTERS $51,901
10.558 CHILD AND ADULT CARE FOOD PROGRAM $41,308
43.008 OFFICE OF STEM ENGAGEMENT (OSTEM) $27,771